High freight costs and worries about quality are seen limiting Italian demand for Australian wheat as the Italian harvest approaches, a senior milling source said on Tuesday.
The source, who asked not to be identified, said one cargo, believed to be around 40,000 tonnes, was expected in Italy.
The source added that there was talk of a further 35,000 tonne trade, but he said high freight rates could prevent the grain from leaving Australia for Italy.
"Consumers are worried about quality and importers are worried about Karnal bunt (disease)," the source said.
Last week, Pakistan rejected four Australian cargoes totalling 150,000 tonnes of wheat on the grounds that they were contaminated by Karnal bunt disease.
AWB Ltd, Australia's monopoly wheat exporter, and the federal government have both said the country's wheat, one of the major supply sources for Asia and the Middle East, was not infected by the disease.
Karnal bunt disease produces foul-smelling off-colour wheat. While not dangerous to humans, it typically leads to rejection by importers, bringing trade to a halt.
Italian pasta makers have bought large quantities of Australian durum wheat in recent years.
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